The Controversy Surrounding the EIA’s Survey of Crypto Mining Firms

The Energy Information Administration (EIA) made the decision to pause the controversial survey of crypto mining firms on Feb. 23 after facing a lawsuit from members of the crypto mining sector. This lawsuit was brought forward by crypto mining company Riot Platforms and the Texas Blockchain Council on Feb. 22. The lawsuit named the EIA, the Department of Energy, the Office of Management and Budget (OMB), and the heads of these agencies as defendants. In response to the lawsuit, the EIA stated that it will not enforce any requirement to file Form EIA-862 or impose any fines, penalties, or adverse consequences on those who do not respond to the survey until March 22, 2024. Additionally, the EIA confirmed that it will sequester any data collected and will not use it until further notice.

Republican Congressman Tom Emmer expressed concerns over the collection of data from crypto mining firms in a letter dated Feb. 22. Emmer argued that the OMB should only approve the EIA’s information collection request if mining activities are likely to cause public harm. He emphasized that Bitcoin mining does not pose a threat to public safety, challenging the emergency approval obtained by the EIA. The lawsuit filed by Riot and the Texas Blockchain Council echoes Emmer’s sentiments, labeling the emergency approval and claims of public harm as “facially absurd.”

The survey of crypto mining firms has been closely associated with the Biden administration and the Democratic party. The lawsuit acknowledges a statement made by the Biden Whitehouse in September 2022, which hinted at targeting mining firms with energy limitation measures and regulations. The EIA’s concerns revolve around the potential increase in energy consumption by Bitcoin mining during periods of high energy demand, particularly in cold weather. Originally, the EIA planned to gather data from 82 crypto-mining firms, with non-compliant companies facing daily fines of $10,000 until the survey period concluded in July.

The controversy surrounding the EIA’s survey of crypto mining firms reflects a broader debate on the regulation of the cryptocurrency industry and its environmental impact. The decision to pause the survey indicates a willingness to address the concerns raised by industry stakeholders and lawmakers. Moving forward, it is essential for all parties involved to engage in constructive dialogue to find a balanced approach that considers both the energy requirements of crypto mining and the potential impact on public resources and safety.